10 May 2018
We are making changes to the rules and guidance of our Designated Professional Body (DPB) scheme.
The scheme enables us to regulate our firms for general insurance distribution activities, on behalf of the UK Financial Conduct Authority (FCA).
We would like to invite individual professionals, regulated firms, and other interested stakeholders to share their thoughts on the potential impact of the proposed changes through a consultation.
The DPB consultation can be found on http://consultations.rics.org/.
Why are we making these changes?
These rules changes are necessary to ensure our scheme complies with new requirements set out in the EU’s Insurance Distribution Directive (IDD) and the Markets in Financial Instruments Directive. These Directives are being implemented by the FCA. Only by amending our rules accordingly, are we able to keep offering our regulatory services to firms undertaking general insurance distribution activities.
While the IDD prescribes some of the required rule changes, your feedback will help inform the overall set of changes.
The new rules were scheduled to be applicable from 23 February 2018, however the European Commission proposed to postpone the application date by 7 months, to 1 October 2018. RICS will need to have the rules in place by 1 July 2018, which is the transposition date.
The key changes to the rules that we are considering relate to certain types of activities carried out by DPB Licensed Firms:
- Satisfying the conditions of being an ancillary insurance intermediary
- Not allowing DPB Licensed Firms to:
- Distribute insurance-based investment products (IBIP)
- Be considered a manufacturer of insurance products for sale to customers
- Offer an insurance product as part of a package or the same agreement (otherwise referred to as cross-selling).
The IDD now applies to all distributors of insurance products, including distributors who provide insurance as an ancillary service.
Have your say
The consultation will run until midnight of 31 May 2018.
For questions, please contact:
Emma La Ferla, Regulatory Policy and Development Manager.
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